July 12, 2016
Seagate Technology reported it plans to cut its workforce by 14% over the next year and consolidate its footprint to help the bottom line. That translates to 6,500 jobs worldwide and an undetermined amount of CRE space reduction.
Newmark Cornish & Carey’s Phil Mahoney says the impact shouldn’t be major because “they already have a Cupertino office building on the market for lease,” and given Cupertino’s low single digit vacancy “the space should be quickly absorbed.”
The Cupertino, CA-based hardware manufacturer has a long-term presence in the Silicon Valley. The moves are expected to cost $164 million during the fiscal year, including $82 million in employee termination expenses.
Shares of Seagate jumped more than 13% to $27.07 in after-hours trading Monday on “better-than-expected” demand for hard disks.
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